How to Contest a Non-Compete Clause

Non-compete clauses are often used by businesses to keep its employees from engaging in work in a related business or in the same area for a certain period of time. These clauses can be very constricting since they limit an employee's ability to work and earn money. Here are some tips to help you contest a non-compete clause.

Instructions

Difficulty: Moderate

1. Understand the law. Courts generally don't like non-compete clauses because they limit an individuals ability to obtain gainful employment. Because of this, most courts will insist that a non-compete clause be reasonably limited in geographic scope and duration.
2. Consult an attorney. The best way to contest a non-compete clause is to have an experienced employment law attorney review the clause to make sure that it isn't unduly restrictive of your rights or in violation of state laws.
3. Look at the clause carefully. Check to see if you were given any compensation for signing the clause and to make sure the clause was drawn as narrowly as possible. Other red flags that can help you contest a non-compete clause are if your employer selectively utilizes or enforces non-compete clauses or if the time and geographic limitations in the clause are just too broad.
4. File a complaint. If your non-compete clause does not specify the type of confidential information it is designed to protect, is unsupported by consideration or is just unreasonable in scope, you may have grounds for filing a complaint against your employer in state court. Your attorney can advise you on your chances of succeeding in any potential lawsuit and help you build your case.

Tips & Warnings

• Be aware that in California, a non-compete clause is only enforceable when someone sells a business and agrees not to compete with the new owner. Besides that, California employers cannot restrict the livelihood of their employees.